In our presentation we will talk about Swiss Re's Enterprise Risk Management (ERM) and focus on the following topics: "Risk Tolerance and Appetite", "Risk Limit System", "Use in Strategic Decision Making", "Internal Model Complexity Management" and "Investment Strategies" We will introduce the principles that are established and the processes that are executed within our ERM framework to systematically and comprehensively address risk throughout the Group. Risk Tolerance and Risk Appetite are the basis for risk steering and Risk Limit setting.

The risk-taking activities of Swiss Re are governed by the Group risk policy. We will briefly discuss the cornerstones of this document, namely the Risk Tolerance definition based on targeted capital adequacy in light of extreme loss absorbency capacity and respectability capital.

When – within the boundary of Risk Tolerance – Risk Appetite is articulated, then a Risk Limit Framework can be defined and broken down to appropriate levels within the company. We will discuss the considerations that led to our first level of the risk limit framework.

An important component of ERM is in fact the quantitative assessment of risk, which – when done in an integrated fashion – will typically rely on an internal risk model. Based on the example of Swiss Re's internal risk model, we will discuss the aspect of Internal Model Complexity Management.

Finally we will touch on how we incorporate Investment Strategies in the ERM framework. Here we highlight the consistent integration of the operational investment process into the overarching Economic Value Management framework of the firm.